Power Hand Tools

China produced 200 million finished tools in 2003. The industry is very competitive and increasingly geared toward high-end products for quality-conscious export destinations.

This report will give you profiles of major suppliers that spotlight R&D competencies, OEM capabilities, machinery used, production processes and more.

You'll also get a comprehensive overview of the industry, with details on upcoming trends, pricing and products that incorporate more functions and safety features.

Use this information to take advantage of industry changes, shortlist producers to contact and benchmark your existing suppliers.

What you'll get

Deep profiles of 19 major power hand tool manufacturers with an in-depth look at their production capabilities, export capacities and future plans. These profiles are based on personal factory visits and interviews with senior managers

Short profiles of an additional 83 suppliers with key facts such as production capacities, export ratios and principal export markets

A product gallery of 184 best-selling export power hand tools from mainland China and Taiwan, with detailed product specifications and full-color photographs

The results of Global Sources' most recent supplier survey with forecasts of future pricing, production, sales and R&D trends

This report covers: drills and fastening tools, saws, sanders, woodworking tools, metalworking tools, hammers and pneumatic drills

How you'll benefit

Find out if rising material costs will affect prices over the next 18 months and if so what it means for the prices you are offered

Discover which types of tool are better sourced from Taiwan rather than mainland China — and whether this is likely to change in the future

Understand how an increased presence of international tool-making companies in China is affecting the production and export of unbranded power tools

Get verified supplier contact information including website addresses for all featured manufacturers

Executive summary

China is one of the world's top manufacturers and exporters of power hand tools, with the majority of output shipped to markets such as Western Europe and North America. In 2003, China makers turned out close to 200 million finished tools and 300,000 tons of tool parts. Exports for the same year accounted for 75 percent of output, a total of US$1.9 billion.

The 1,000+ supplier base is divided into three main groups: state-owned enterprises, privately owned manufacturer/exporters and joint ventures or subsidiaries of industry giants such as Makita and Bosch. Privately owned companies have emerged as the main driving force in the industry, although the presence of foreign tool-making giants and the technology innovations they have introduced has helped shape the industry into the powerhouse that it is today.

China offers a range of power hand tools. For the purposes of this report, the tools are grouped into seven major types: drills and fastening tools, sanders, woodworking tools, saws, metal-working tools, hammers and pneumatic tools. This report covers tools for both the DIY market and the professional user.

DIY tools make up the bulk of power hand tools output in China because these are easier to manufacture, requiring a lower level of production technology than professional tools.

Designed for common household repair work, DIY tools are typically lighter in weight and can be used only for short durations.

Professional tools, which are designed to withstand heavier and more constant workloads, are less common in China, mainly because branded marketing is vital for competing in this segment, an ability that China suppliers have yet to develop.

This report discusses the latest trends and provides price guides for DIY and professional versions of all seven tool types.

Stiff competition in the low-end tool market has prompted suppliers to shift to midrange and high-end segments, targeting quality-conscious export destinations such as the EU and the United States. This is reflected in the results of the Global Sources Supplier Survey, which showed the EU leading the list of high-growth potential markets, with a 64 percent response rate.

R&D in the tool industry focuses on three key aspects. The first is tool versatility, which involves equipping products with accessories ranging from bits and blades to heads that would allow them to perform different tasks.

The second aspect is safety features. Manufacturers are incorporating features such as double-insulated housings, ergonomic handles and blade guards that minimize the risk of accidents or injury.

The last is the development of tools with a higher power-to-weight ratio. These tools target both professional users and DIYers. They have housings made of lightweight materials and are equipped with compact motors that are still capable of performing heavy-duty tasks.

Industry overview

China is one of the leading manufacturers and exporters of power hand tools in the world, with output reaching almost 200 million finished tools in 2003. The country also produced 300,000 tons of tool parts the same year.

The industry is heavily export-oriented. According to the China Electric Tool Association, about 75 percent of output (150 million pieces) was exported in 2003 with a total value of US$1.9 billion.

Customs statistics support this. In the 12-month span between March 2003 and February 2004, figures show that China exported close to US$2 billion worth of power hand tools.

The main destinations were Western Europe, which absorbed 44 percent of exports, and North America, which accounted for 35 percent of outbound shipments.

China's supplier base of power hand tools consists of some 1,000 manufacturers. Companies are grouped into three major types: state-owned enterprises (SOEs) that produce mainly professional tools for the domestic market, private exporters that have become the primary driving force in the industry and joint ventures between Chinese companies and top-brand toolmakers such as Makita and Bosch.

Power hand tools cover a wide selection of products. For the purposes of this report, these have been categorized into seven major tool types: drills and fastening tools, sanders, woodworking tools, saws, metal-working tools, hammers and pneumatic tools.

China feels the presence of top-brand makers
China first became known as a cost-efficient offshore location for leading toolmakers when companies such as Black & Decker, Bosch and Makita established joint ventures with stateowned enterprises in the 1990s. This was in accordance with government regulations that required foreign manufacturers to partner with Chinese companies if the former wanted to open manufacturing facilities in China. Typical examples are Shanghai Hitachi (a JV between Shanghai Power Tools and Hitachi Industry Machine Co.), ACC Changchun Electric Power Tool (a JV between Atlas Copco and Changchun Electric Power Tool) and Hangzhou Bosch Power Tools Co. (a JV between Hangzhou Steam Turbine & Power, Bosch and C. Melchers).

Samples of supplier profile

Changzhou Create Appliance Co. Ltd
A toolmaker for 16 years, Changzhou Create was one of the first exporters of power tools in China. It specializes in power hand tools, garden and benchtop tools and churns out about 960,000 power hand tools every year. Sanders in various models account for more than half of this figure.

All of Changzhou Create's products are exported, mainly to buyers of midrange tools in the United States and Europe. More than 90 percent of exports are OEM-based. The company reported exports of US$15.7 million last year, marking a 30 percent growth from 2002. It expects sales to reach US$19 million this year.

Formerly a state-owned enterprise, Changzhou Create is now privately owned. It introduced the 5S management system this year and is now streamlining production facilities.

Products and prices
Changzhou Create's selection of DIY power hand tools and garden tools consists of more than 50 models of sanders, polishers, electric grinders, heat guns, angle drills and electric wrenches. The company has invested US$60,000 to US$75,000 to obtain product certification. As a result, most of its products, are GS-approved and UL-listed.

The company manufactures sanders on an OEM basis for Ryobi, which then supplies the tools to Sears and Home Depot. The sanders have endured testing through temperature levels of as low as -39 degrees Celsius. These have a continuous operating time of about 120 hours. The sanders are usually packed with abrasive paper as per buyers' requirements and are priced from US$8 to US$17. Prices will remain stable for the next 12 months.

Changzhou Create invests US$300,000 annually in R&D. A 15-member R&D team uses Solidwork, Pro/E and CAD software to design five new power hand tool models every year. Product development centers on extending operating time: the company has designed sealed motors with improved service lives to replace C-type motors. The team also looks at ergonomic designs to make tools easier to use.

The R&D team also collaborates with the Jiangsu University of Science and Technology and Changzhou Institute of Technology, mainly on cosmetic design development. It also cooperates with OEM customers to improve R&D capability. Changzhou Create applies for four to five patents every year for new designs, structure and functions.

Production capability
Our team toured Changzhou Create's 240-square-meter testing laboratory, which is capable of performing damp, durability, drop, impact, EMS and switch fatigue tests among others. It is equipped with a Rohde & Schwarz EMC test system—consisting of a twoline V-network, a receiver and monitor imported from Germany.

Sample of product gallery

Drills and fastening tools Changzhou 99 Product type: Electric drill Model name/number: DCC-303 Approvals/certifications: UL, CE, EMC, GS Indicated FOB price: Negotiable Description: Voltage: 230/120V; no-load speed: 8,000 to 30,000rpm

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